Performance Report 1998/99

Project Management

1998/99 Performance Report

CAPITAL SUPPORT PERFORMANCE
MEASURES

A. Background

In December 1995, the Department submitted its REPORT TO THE LEGISLATURE ON CAPITAL SUPPORT PERFORMANCE MEASURES in response to supplemental report language
in the 1995 Budget Act. That report proposed twelve measures for evaluating all major capital outlay support functions.
The budget language stated that the proposed measures must provide an accurate measure of annual efficiency, provide a
consistent basis for year-to-year comparison, evaluate the Department's cost and timeliness in completing work, and measure
the quality of completed projects.

In the Department's three-tiered scheme of measures, these twelve capital support performance measures are program measures for the statewide Capital Outlay
Support (COS) Program. Their relationship to corporate measures will be described later in this report.

The purpose of this report is to summarize, at the Program level, the status of the capital outlay support performance measures, report data for these measures
for the past few years, where available, and recommend targets, where possible.

B. Context of Capital Support in the Department

Performance Measure #1 of the Report to the Legislature proposed "pie" charts showing PY and dollar expenditures for the Department's programs, the elements of
the Highways program, and the parts of capital support. This is not a performance measure as such, but rather it sets the context for the other measures. For the purpose of this
summary report, a few of these charts are shown to set the context.

In FY 1998/99, total Caltrans expenditures
were $5.31 billion of which $4.60 billion or 87%
were Highways Program expenditures. The dominance
of the Highways Program is shown in the following
chart:

Expenditures on
the Five Caltrans Programs in the 1998/99 Fiscal
Year

Caltrans Project Management
from 1998 to 1999 by Activity and Percent Expenditure

Core Program

FY
1998/99
Dollars

FY
1998/99
Percent

Aeronautics

$15

0.27%

Highways

$4,598

86.64%

Mass
Transportation

$409

7.70%

Transportation
Planning

$50

0.95%

Administration

$235

4.44%

TOTAL

$5,307

100%

Of the $4.60 billion
in Highways Program expenditures, capital support
represents $920 million and capital outlay $1.945
billion. The percentages for these and the other
elements of the Highways Program are shown below:

1998/99 Capital Support Expenditures
by Activity Category and Percent Expenditure

Activity Category

Percent
Expenditure

Equipment Services

< 1%

Maintenance

16%

Operations

3%

Legal
Services

2%

Planning & Research

1%

Local Assistance

15%

State/Local Partnership

2%

Capital Support

20%

Capital Outlay

42%

The percentage breakdown of the
$920 million of capital support is shown below:

1998/99 Capital Support Expenditures
by Activity Category and Percent Expenditure

Activity Category

Percent
Expenditure

Locally
Funded Projects

4%

Overhead

13%

Owner Operator

11%

State
Program Projects

72%

C. Relationship of Capital Support to Capital Outlay

Perhaps the most sensitive of all the capital support measures is
the ratio of capital support to capital outlay. This is Performance Measure #2 in
the Report to the Legislature. This relationship for each year from FY 1988/89 to 1998/99
is shown below. The chart and table show a three-way breakdown of capital support, and
the overall relationship to capital outlay dollars. The data for both capital support and
capital outlay exclude expenditures on locally funded projects. Capital support also excludes
owner-operator services.

Target: This measure is used to analyze trends and, therefore, there is no
specific goal associated with this measure.

It is important to note that the capital support and capital outlay expenditures
represent different sets of projects at different times. Capital support effort for Preliminary
Engineering and, to a lesser degree Design, is expended on projects that will be under construction
in some future fiscal year. Similarly, capital outlay is expended for projects which incurred
Preliminary Engineering and Design support expenditures in past fiscal years. Over time, however,
the trend can be analyzed to provide valuable management information. The chart on the next page
depicts this trend.

1988/89 through 1998/99
Capital Support Expenditures as a Percentage of
Capital Expenditures